Ok... here's the dillio with all that.
There are several pieces which try and "help" install drivers. All of the detection/install stuff other than my new detection scheme is dumb (meaning not actively parsing card types, not that it was written dumbly)... and installs fglrx for anything ATIish. The fglrx drivers screw up the frame buffering for the radeon drivers which my scheme designates when appropriate. I am working to change those bits which install fglrx, but in the meantime I have broken other things. Once I fix what I broke, which requires some change, I will change these things to behave more appropriately.
So... the cheap and greasy answer is to replace the word "radeon" with "fglrx" in your /etc/X11/xorg.conf file, and my detection scheme will say "hey... something isn't right here... oh no... we want radeon but fglrx is installed... lets purge all of that and do it again the right way".